Quick Overview

Term insurance is not available to individuals who are undergoing active cancer treatment. If the treatment is completed and the person is in remission, they may apply for term insurance after 2-5 years. However, approvals are extremely rare in these cases, primarily because of the high mortality risk.

Term insurance is designed to cover predictable and long-term mortality risks. A history of cancer significantly alters this requirement from an insurer’s perspective.

Many people assume that surviving cancer or entering remission automatically restores eligibility. In reality, term insurance approvals for cancer patients are rare in India.

This article explains why term insurance for cancer patients is usually unavailable and outlines rare eligibility scenarios and practical alternatives if coverage is declined. 

Unsure whether term insurance is even worth applying for after cancer? Speak to Ditto’s certified advisors for honest, unbiased guidance, no spam, no sales pressure.

How Does Term Insurance for Cancer Patients Work?

Cancer introduces long-term medical uncertainty, even after treatment is completed. Because of this elevated mortality risk, insurers follow extremely conservative underwriting practices.

Most applications where the applicant has a history of cancer are underwritten manually. This process includes detailed medical reviews, specialist reports, and extended evaluation timelines. Even if coverage is offered, it may involve higher premiums or a reduced sum assured.

Note

If term insurance is purchased before a cancer diagnosis with full and accurate disclosures, death due to cancer is covered without any issue. Additionally, if a critical illness rider is added, it pays a lump sum upon diagnosis of a specified severity of cancer. If a terminal illness rider is opted for or built in, the full sum assured is paid upon a terminal cancer diagnosis.

Can I Buy a Term Insurance Plan After Being Diagnosed with Cancer?

You cannot buy a term insurance plan while undergoing active cancer treatment.

Insurers will decline applications regardless of cancer stage, type, or treatment progress. This applies even if the cancer was detected early or has a high survival rate.

At present, there are no standard exceptions for cancer patients across Indian insurers.

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Can I Buy a Term Insurance Plan When the Cancer Is in Remission?

It may be possible to apply for term insurance after cancer enters remission. In practice, approvals remain extremely uncommon.

Most insurers require at least 2-5 years of complete recovery after treatment ends. Even after this period, many applications are still declined.

Based on our experience and discussions with insurance company underwriters, successfully issuing a term insurance policy to a policyholder is rare due to persistently high mortality risk.

How Can I Improve My Chances of Getting Term Insurance as a Cancer Patient?

If a person in remission still wishes to apply for term insurance, certain steps may improve the quality of the application.

    • Apply only after your cancer treatment is complete.
    • Submit a well-documented medical file. It should include diagnosis details, cancer staging, treatment summaries, completion dates, and recent follow-up reports.
    • Start with a moderate sum assured (₹50 lakhs or less). It may be more realistic than applying for a high cover amount.
    • Expect medical tests and longer underwriting timelines than healthy individuals. It is advisable to apply through a channel that supports manual underwriting discussions.
    • Disclose medical history fully, as non-disclosure will result in claim rejection as per Section 45 of the Insurance Act.

What Are The Alternatives if Term Insurance Is Denied

Group Term Life Insurance

Employer-provided group term insurance has simpler entry conditions. Medical underwriting may be limited or waived at the time of joining. However, coverage amounts are usually lower, and it typically ends when the employment ends.

Low-cost Life Insurance Schemes

Government-backed schemes offer basic financial protection. PMJJBY provides ₹2 lakh life cover for death due to any cause for ages 18–50, with a 30-day lien period. PMSBY also offers accidental death and disability cover for ages 18–70.

Personal Accident Insurance

Personal accident policies may be easier to obtain than medically underwritten life insurance. However, they provide financial protection only in case of accidental death or disability. Even though personal accident insurance is different from term insurance for cancer patients, it still fulfills a financial need in case of sudden death.

Building a Self-insurance Buffer

If life insurance coverage is not possible for the person with cancer, financial preparedness becomes essential. This includes maintaining a larger emergency fund, reducing high-interest debt, and investing consistently. Additionally, the healthy spouse should ensure they have adequate term insurance to financially protect the family.

Why Choose Ditto for Term Insurance?

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Term Insurance for Cancer Patients
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Conclusion

Term insurance for cancer patients is largely unavailable in the current market. Active treatment results in automatic rejection, and remission does not guarantee acceptance. In such situations, focusing on alternative protection layers is often more practical. The objective should be to create meaningful financial security without relying on unlikely approvals.

Frequently Asked Questions

Can cancer survivors buy term insurance in India?

Cancer survivors may apply for term insurance after remission, but approvals are extremely rare across Indian insurers.

Does the stage of cancer affect eligibility?

During active treatment, cancer stage does not affect eligibility, as all term insurance applications are rejected. 

Will premiums be higher if a cancer survivor is approved?

If approved, premiums are usually significantly higher, or the cover amount is restricted.

If I am diagnosed with cancer after purchasing term insurance and later die due to it, will the claim be paid?

Yes. If the policy was purchased before diagnosis and disclosures were accurate, death due to cancer or other natural causes is covered.

How is term insurance for cancer patients different from the critical illness rider?

Term insurance pays on death, while a critical illness rider pays a lump sum only if purchased before diagnosis, subject to policy and rider conditions.

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